Major lenders roll out new deals and incentives as market heats up
Barclays has reduced rates across a wide range of its residential mortgage products, while HSBC UK has expanded its green cashback offer to buy-to-let landlords, as both lenders respond to heightened competition in a mortgage rate war.
The lender’s most notable reduction is to its two-year fixed rate at 75% loan-to-value (LTV), which has dropped from 4.01% to 3.79% with a £899 product fee. The two-year fixed at 60% LTV has also been cut, now standing at 3.75% from 3.84%, also with a £899 fee.
In addition to rate reductions, Barclays has introduced new products for both purchase and remortgage customers. These include a two-year fixed rate at 4.05% with no product fee for purchases up to 80% LTV, and a “Great Escape” two-year fixed at 4.46% with no fee for remortgages at the same LTV, available for loans between £50,000 and £2 million.
Other rate decreases apply to several fixed rate products across different LTV tiers and loan sizes, including Premier and Green Home options. For example, the Premier two-year fixed at 60% LTV has been reduced to 3.74%, while the Green Home two-year fixed at 60% LTV now stands at 3.85%. Similar reductions have been made to three- and five-year fixed rates, as well as to products in the Existing Customer Reward range.
Alongside these product changes, Barclays has launched a new residential mortgage application system for intermediaries. Announced yesterday, the platform is designed to streamline the application process and reduce administrative burdens for brokers. According to the bank, early users have reported completing cases in an average of 15 minutes.
Meanwhile, HSBC UK has expanded its Energy Efficient Home Cashback (EEHC) mortgage to include buy-to-let landlords.
The move follows the bank’s recent decision to increase the maximum LTV for BTL mortgages to 80% for loans up to £400,000, allowing landlords to purchase properties with a smaller deposit.
The EEHC mortgage offers a £350 cashback payment on completion for customers purchasing or remortgaging a property with a valid energy performance certificate (EPC) rating of ‘A’ or ‘B’. This incentive is now available on select BTL mortgages and is paid in addition to any other product incentives.
The high street lender said the expansion aims to support landlords in making sustainable property choices. The bank’s broker survey found that a quarter of brokers believe the amount of cashback on a green mortgage is often a deciding factor for clients.
“Landlords play a vital role in providing quality housing across the UK,” said Oli O’Donoghue, head of mortgages at HSBC UK. “By expanding our Energy Efficient Home Cashback mortgage into the buy-to-let market, we are empowering them to make more sustainable choices for their properties and, in turn, for their tenants.
“This increase in availability, alongside our recent move to increase BTL LTVs, demonstrates our commitment to supporting landlords in a responsible and accessible way.”
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